A New Standard in Silver?

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Sometimes things just can’t wait.

This past week we caught wind of a news release that triggered an immediate interest from our staff signaling us to, once again, change our schedule for Equedia Weekly.

At Equedia, our stance remains firm on the fact that precious metals are going through the roof. Last week, we gave you the reasons gold will continue its run.

Gold sprinted to yet another all time high this past week.

But now we want to bring you a story that requires immediate attention. You see, we love precious metal stocks. We love gold.

But we also love silver…

During one of the greatest bull market runs for gold in the late 70’s when inflation hit 13%, annual gold prices climbed close to 70%. But what many people fail to remember is that silver, what many call as the poor man’s gold, shot up an incredible 1100% to $50/ounce!

Right now, we’re seeing history in the making.

Silver has already climbed more than 50% this year. If we are expecting gold to rise, we should be doing the same for silver.

Analysts are already calling for $30, $40, even $50 dollar silver. This leads us to the story and news release that just cannot wait.

Over the last ten years, there has been one silver stock that has outperformed every major indices. It crushed the NASDAQ by 11,500%. It destroyed the Dow by over 12,000%. And it obliterated the S & P 500 by a whopping 18,000%.

To put in short, a measly $1000 investment into this company would have netted you $76,000. A $14,000 investment would have made you a millionaire raking in just over $1 Million!

The story goes like this…

Many years ago, a small Canadian exploration company went and purchased a group of abandoned silver mines. Like many companies hoping to strike the big one, their hopes relied on succeeding where all previous owners had failed. Just like the story of Goldcorp in our past newsletter, “The Gold Super Hero.”

Over the last 14 years before the Canadian junior snatched up this piece of property, it hadn’t produced a single ounce. But as the drills turned, so did the fortunes of this company and its investors. They uncovered over 195 million ounces of silver reserves! If at first you don’t succeed…

This company is Silver Standard Resources (TSX:SSO)(NYSE:SSRI)

Because of their discovery, Silver Standard gave its investors over 850% profits, year after year, for nine straight years!

Silver Standard Chart

But guess what? We’re not here to talk about Silver Standard.

We’re here to talk about Silvermex Resources Ltd. (TSX-V: SMR)

Here’s why.

We caught wind of a news release that peaked our immediate attention and caused us to change our schedule, yet again. Last week, Silvermex Resources Ltd. (TSX-V: SMR) put out this press release stating that they have elected a few new directors:

Silvermex Resources Ltd. (TSX VENTURE: SMR) announces that on November 4, 2009 it held its Annual and Special Meeting wherein the following directors were elected to the board: Arturo Bonillas, Bruce Bragagnolo, Duane Nelson, Joseph J. Ovsenek, Kenneth C. McNaughton and Michael H. Callahan.

Doesn’t sound interesting at first glance, I know. But take a closer look.

Both Bruce and Arturo are the founders and CEO and President, respectively, of Timmins Gold Corp. Timmins gold is focused solely on Mexico, where Silvermex operations reside. These two have taken Timmins’ from their 52-week low of CDN$0.20 to over a $1 dollar this past Friday. That’s a 500% increase.

Duane A. Nelson: Over 25 years of private and public sector experience with a focus on early-stage projects.

Michael H. Callahan: Vice President, Corporate Development of Hecla Mining Co., from 2002 to 2006. He served as President of Minera Hecla Venezolana, a subsidiary of Hecla Mining Co and also as Vice President of Hecla Mining Co. from 2006 to January 2009.

Hecla Mining currently has a market cap of $1.27 billion.

But that’s not the only thing that struck us.

Take a look at the other names.

Joe Ovsenek: Senior Vice President, Corporate Development of Silver Standard Resources Inc.

Kenneth C. McNaughton: Vice President, Exploration for Silver Standard Resources Inc since 1991.

With the new team in place, Silvermexcertainly has our attention.

Here is the full news release: Click Here

It looks like we’re not the only ones. Over the past week since the announcement of their new directors, Silvermex has quietly crept up from just over CDN $0.26 to a close of $0.32 this past Friday.

Oh, and lets not forget that Silver Standard and insiders currently own a large chunk of shares in Silvermex. More than 20%…

Silvermex Resources is a silver exploration and development company focused strictly in the foremost mining regions of Mexico. They’re developing silver resources at multiple projects and has global silver resources totalling 42.7 million ounces.

Right now they trade at CDN$0.32 with a market cap of $15.7 million

In Q2 of this year, Silvermexcompleted an in house preliminary economic study which supports the plan to advance their San Marcial (their flagship property) to production. The Company is confident that San Marcial can achieve commercial production in a 24 month time horizon with an annual production rate of 2.3 million ounces silver.

The recently announced option to acquire 100% of the Rosario silver mine provides the necessary infrastructure to accelerate the advancement to production at San Marcial.

There you have it, our featured silver companies of the year.

Silver: Silvermex Resources Ltd. (TSX-V: SMR)


Until next week,

Ivan Lo

Forward-Looking Statements

This Newsletter and report contains certain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from current expectations and projections. Except for statements of historical fact relating to the project, certain information contained herein constitutes “forward-looking statements”. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur.

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